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WorksheetsPersonal Finance-Semester 2 review
Total questions: 92
Worksheet time: 54mins
_____ is used to determine eligibility for federal financial aid.
The Federal Pell Grant
The Free Application for Federal Student Aid (FAFSA)
A 529 plan
A work-study
Which career level requires specialized knowledge and skills in a specific field of study?
entry
career
specialist
executive
An example of an aptitude is _____
perfection
thinking logically
collecting
drawing
Which of the following best represents a measurable goal?
I want to have a master degree.
I want to be successful.
I want to have a career.
I want to be a professional.
_____ is the elimination of jobs generally because the economy is suffering.
Downsizing
Outsourcing
Onshoring
Offshoring
Which of the following is most likely a for-profit school?
Trade school
Four-year public university
Four-year private university
Community college
Which of the following is a graduate degree?
high school
associate
bachelor
master
Which of the following is a postgraduate degree?
associate
bachelor
master
doctorate
Which of the following would most likely require continuing education classes?
biology dissertation
English degree
teaching license
mathematics degree
What does the GI Bill provide?
Financial assistance for veterans pursuing education or training.
Advanced degrees to veterans depending on their years of service.
Private tutors for veterans in a degree program.
Guaranteed employment for veterans.
Which of the following is true regarding high-risk borrowers?
They often have high credit scores.
They are most likely to pay debts.
They will have trouble getting credit.
They will likely have a lower interest rate.
Which is the best example of closed-end credit?
vehicle loan
store credit card
signature loan
bank credit card
Which of the following best describes open-end credit?
Which purchase is best served by the use of credit?
buying a month's worth of groceries
buying a new refrigerator
buying a new video game
buying dinner for a date
What does it mean to be creditworthy?
accepting responsibility for a loan if the borrower fails to pay
having the assets, income, and willingness to repay debt
having a poor credit score
having a credit history
Which of the following is most likely to incur a fee from a credit lender?
having a zero balance
closing the account
making an early payment
exceeding a credit limit
Of the following, which is not a result of a credit problem?
lien
garnishment
foreclosure
zero balance
Which law requires creditors to tell consumers what credit will cost them before they use it?
Credit CARD Act
Truth in Lending Act
Fair Credit Reporting Act
Fair Credit Billing Act
Which of the following actions helps protect against credit fraud?
Carry all cards with you at all times.
Allow others to use or carry your card.
Destroy cards that have expired.
Throw credit statements in the garbage.
What did the Dodd-Frank Wall Street Reform and Consumer Protection Act do?
Increased regulation of the banking and financial services industry.
Prohibited companies from mailing offers to customers under the age of 21.
Made filing for Chapter 7 bankruptcy more difficult.
Gave consumers the right to refuse to pay a creditor if there is a dispute with a seller.
Which of the following is true regarding a debt management plan (DMP)?
You will be excused from all debt over $15,000.
Your creditors may agree to lower your interest rates or waive certain fees.
Debtors should pay high fees for the service.
A DMP does not require monthly payments.
Which law prohibits credit card companies from offering free T-shirts or other incentives to sign up at university-sponsored events?
Credit Card Accountability and Disclosure Act
Dodd-Frank Wall Street Reform and Consumer Protection Act
Equal Credit Opportunity Act
Fair Credit Recruitment Act
Which of the following solutions to credit problems should be done first?
declare bankruptcy
allow creditors to garnish wages
notify creditors
allow foreclosure
Which of the following always results in lost ownership of property?
garnishment
repossession
bankruptcy
debt collection
Which governmental agency was created as a result of the Dodd-Frank Wall Street Reform and Consumer Protection Act?
Consumer Financial Protection Bureau
Wall Street Reform Organization
Bureau for Financial Monitoring
Coalition of Consumers’ Defense
Spending more money than a person can afford to spend is called _____
overspending
budgeting
saving
investing
Which best describes the sale of merchandise on television using an interactive or smart television?
m-commerce
e-commerce
e-business
t-commerce
What best describes a printed or electronic offer giving a discount for goods or services bought before a certain date?
rebate
customer loyalty program
coupon
clearance
What is a brick-and-mortar store?
A retail store that sells construction equipment.
A retail store that sells directly from a physical location.
A retail store that supports the economy of the town in which it is located.
A retail store that also houses corporate offices.
Which of the following best describes an apartment that has a bathroom and one large room serving as a living room, bedroom, and kitchen?
studio
complex
When is PMI required?
When the loan has a monthly payment of more than 10 percent of the borrower’s monthly income.
When the loan has a monthly payment of more than 25 percent of the borrower’s monthly income.
When the borrower has a down payment of less than 50 percent of the purchase price.
When the borrower has a down payment of less than 20 percent of the purchase price.
Which of the following is a disadvantage of renting a residence?
greater financial risk
less mobility
no tax benefits
less free time
Which of the following is an example of a common contingency clause in a purchase agreement?
The validity of the agreement depends on the seller’s willingness to lower the asking price.
The validity of the agreement depends on the buyer’s willingness to keep the property as-is.
The validity of the agreement depends on the buyer’s ability to sell the previous home.
The validity of the agreement depends on the seller’s ability prove the purchase of another home.
What is the function of earnest money?
Earnest money helps pay for insurance and taxes.
Earnest money prohibits the seller from selling the home to someone else.
Earnest money is part of the loan application package.
Earnest money operates as a retainer for real estate attorneys.
What is true regarding month-to-month rentals?
Renting month-to-month is typically more expensive.
No notice needs to be given before leaving a month-to-month rental unit.
Renting month-to-month does not require renters insurance.
Roommates are not allowed under a month-to-month agreement.
Which of the following is true regarding the automobile marketplace?
Why should trade-in prices and vehicle prices be negotiated separately?
Less tax is paid if they are done separately.
It is illegal to negotiate them together.
Consumers often get a better deal that way.
They should not be negotiated separately as it makes up one purchase.
The FTC Used-Car Rule does not apply to ________.
new-car dealerships
private sellers
auto superstores
used-car dealerships
Which of the following is an expense that is not actually paid, but can represent a sizable amount of money?
fuel
depreciation
registration
maintenance
The FTC Used-Car Rules requires which of the following to be displayed on the Buyers Guide sticker?
A description of warranty coverage or lack of it.
A description of how many previous owners the car had.
A description of where the car was manufactured.
A description detailing for how much the car was previously sold and repurchased.
When purchasing a used car, it is a good investment to purchase a(n) ________.
air purifier
upgraded battery
VIN history report
anti-corrosive sealant
Which of the following is true regarding lemon laws?
They do not apply to trucks, only cars.
They do not apply to used vehicles.
The help received under lemon laws is automatic and straightforward.
The problem must be well documented, as well as the attempts to fix it.
What are the four common methods of risk management?
avoid, reduce, transfer, assume
identify, assess, avoid, transfer
avoid, assess, assume, analyze
transfer, reduce, identify, analyze
Making financial preparations for possible future loss is also called
implementation
speculating
avoidance
self-insuring
Homeowners insurance provides what two basic types of coverage?
uninsured protection and umbrella coverage
umbrella coverage and property protection
property protection and liability protection
liability protection and underinsured coverage
Which of the following best represents an example of a speculative risk?
texting while driving
buying stock in a company
a tornado touching down
disability of a family member
Which of the following is true regarding insurance?
The type and amount of insurance needed varies depending on the person buying it.
Generally, automobile insurance is included when homeowners insurance is purchased.
Having insurance guarantees 100% reimbursement in all accidental situations.
The price of an insurance policy is the only factor to consider when purchasing insurance.
Purchasing insurance is an example of which risk management strategy?
avoid
reduce
transfer
assume
What is the main purpose of insurance?
Davis purchased a brand-new television six years ago for $1,200. This year, a fire occurred in the house and damaged the television. If Davis’ property is insured for replacement value, what will likely be received?
A check for $500, which is the depreciated value.
A check for the amount of a television of comparable quality.
Nothing.
An exact replacement TV from the manufacturer.
Which of the following represents a managed care plan?
point-of-service (POS) plan
preferred provider organization (PPO)
health maintenance organization (HMO)
high-deductible health plan (HDHP)
Which part of Medicare covers hospice care?
Part A
Part B
Part C
Part D
In terms of life insurance, what does double indemnity mean?
Double indemnity means that after a certain age, the premium doubles.
Double indemnity provides for double benefits if death is accidental.
Double indemnity provides benefits for two beneficiaries as opposed to one.
Double indemnity means that the insurance is secured by the federal government.
If a patient has coinsurance of 20 percent and medical services cost $100, what is the patient’s cost?
$80
$20
$60
$40
A ______ is an individual who relies on someone else for financial support.
beneficiary
coinsurer
minor
dependent
_____ are usually offered through an employer.
Medicare plans
Health insurance exchanges
Group health insurance plans
Medicaid plans
Taking responsibility for your health care includes _____
waiting until you need insurance to buy it
saving insurance costs by not having an annual exam
destroying your receipts of paid medical bills
carrying your proof of insurance with you at all times
Who pays for worker’s compensation insurance?
employers
taxpayers
employees
the federal government
Which of the following patients would benefit most from hospice care?
a patient with two broken legs
a patient recovering from a transplant
a patient with terminal cancer
a patient recovering from routine surgery
Financial aid that may be based on financial need or some type of merit or accomplishment.
scholarship
loan
internship
tuition
Short-term position with a sponsoring organization that gives the intern an opportunity to gain on-the-job experience in a certain field of study or occupation.
apprenticeship
full-time job
volunteering
freelancing
Refers to building awareness about college opportunities, providing guidance regarding college admissions, and identifying ways to pay for college.
informational interviewing
job shadowing
internship placement
career assessment
Education received in high school.
secondary education
primary education
tertiary education
vocational training
Education that prepares you for a specific type of work.
certification
recreation
meditation
vacation
Any education achieved after high school.
postsecondary education
elementary education
preschool education
primary education
Savings plan for education operated by a state or educational institution.
grant
loan
scholarship
endowment
Part-time job on a college campus subsidized by the government.
work-study
internship
scholarship
grant
Individual’s credit and financial behavior over a period of years.
credit rating
net worth
income statement
tax bracket
Property that a borrower promises to give up in the event the loan cannot be repaid.
collateral
interest
dividend
premium
Businesses that give customers high-interest loans with personal property held as collateral.
pawnshops
credit unions
investment banks
insurance companies
Type of open-end credit agreement that offers a choice of paying in full each month or spreading payments over a period of time.
revolving credit account
installment loan
secured loan
payday loan
Agreement between two parties in which one party lends money or provides goods or services to another party with the understanding that payment will be made at a later date.
contract
invoice
receipt
guarantee
Total amount paid by a borrower to a lender for the use of credit.
finance charge
principal
collateral
down payment
Most likely to pay debts.
creditworthy
unreliable
indebted
careless
Short-term, high-interest loan.
payday loan
mortgage
student loan
auto loan
Loan against the available credit on an individual’s account.
cash advance
overdraft protection
balance transfer
installment loan
Party receiving credit.
debtor
creditor
guarantor
lender
Legally binding agreement between the borrower and the lender.
contract
receipt
invoice
memo
Portion of the purchase price paid up front.
down payment
mortgage
interest
escrow
Loan for an agreed amount for money that must be repaid with interest by a specified date or according to a defined schedule.
closed-end credit
open-end credit
revolving credit
installment loan
Time between the billing date and the start of interest charges.
grace period
credit limit
minimum payment
late fee
Creditor’s evaluation of an applicant’s willingness and ability to pay debts.
credit rating
credit limit
collateral
interest rate
Mortgage with a guaranteed interest rate for the life of the loan.
Fixed-rate mortgage
Adjustable-rate mortgage
Interest-only mortgage
Balloon mortgage
Person who rents a property.
Lessee or tenant
Landlord
Owner
Agent
Fee charged by lenders at closing; equals one percent of the mortgage.
Point
Amortization
Escrow
Principal
Deposit made by a buyer when signing a purchase agreement to show that the offer is serious.
Earnest money
Down payment
Security deposit
Option fee
Permits a tenant to move out at any time as long as the required notice is given.
Month-to-month lease
Fixed-term lease
Sublease agreement
Commercial lease
Fee or settlement charge that must be paid before the sale of a home is final.
Closing cost
Mortgage rate
Property tax
Homeowners insurance
Group of rooms designed for use as a private living space.
Apartment or dwelling unit
Office suite
Hotel lobby
Classroom
Contract between a homebuyer and a seller that includes a description of the real estate, its location, the purchase price, the possession date, and any other conditions and terms of the sale.
Purchase agreement
Lease agreement
Mortgage note
Title insurance
Holds money in a trust for others.
Escrow account
Savings account
Checking account
Loan account
Amount the seller wishes to receive from the sale of the property.
Asking price
Down payment
Commission
Appraisal value
